A controlled assessment of the outcomes of two contrasting treatment regimes for hospitalized schizophrenia patients is being carried out, one involving an active milieu therapy program (including antipsychotic medication and psychiatric clinical management) and the other involving a similar program supplemented by intensive individual psychotherapy continuing until no longer indicated. The pilot project is examining the cost-effectiveness of several measures, the feasibility of inter-hospital interchange of data and personnel, the feasibility of control and sample selection procedures, the effect of strict informed consent procedures upon sample bias if any, the feasibility of random assignment of therapy, the sensitiveness to change of the measures, and the most effective assessments of the nature of a milieu therapy program and of its effectiveness. The study involves collaboration between University Hospital, The Boston State Hospital and the McLean Hospital.